File 2764/1904 Pt 2 'Baghdad Railway: General negotiations 1908-10.' [‎370v] (755/799)

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/This Document is the Property of His Britannic Majesty's Government
BAGDAD RAILWAY.
SECRET.
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[April 13.]
Sbctiok 1,
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[12665]
No. 1.
Mr. G. Barclay to Sir Edward Grey.—{Received April 13.)
(No. 171. Confidential.)
Sifj Pera, April 7 1903.
REEERRIIs G to my telegram No. 83 of the 3rd instant, in which I reported
that I was infoimed on private but reliable authority tnat the German Ambassador
was pressing for the prolongation of the Bagdad Railway, I now have the honour to
foiward heiewith a copy of a IVlemorandum which has since been furnished me hy my
informant. As you are aware, the surplus of the ceded revenues, which is looked to
as security for the necessary construction loan, was at the end of last year already
pledged well into 1910. Since then Sir Nicholas O’Conor has reported a further
charge upon it of £ T. 200,000 as security for a loan made to the Government hy the
Anatolian Railway Company, and quite recently this charge has been increased hy a
further £ T. 100,000. I do not know how it is proposed to clear off these charges so
as to free the surplus for the purpose now in view.
A notice in the Turkish press which appeared two or three days ago to the effect
that the Anatolian Railway Company [sic] had applied to the Minister of Public
Works for the extension of the Bagdad Railway to Aleppo afforded me a favourable
opportunity for delivering the hint indicated in your telegram No. l 66 of the
4th instant. I conveyed the message yesterday to the Grand Vizier, who, in his reply,
confirmed my information that he was opposed to the prolongation of the railway.
As regards the Macedonian deficit, his Highness said that, if the proceeds of the
3 per cent, surtax came up to expectations, the deficit would gradually he cleared off
in the natural course. This is no doubt true if the next two or three years show
favourable customs receipts, hut the outlook for the current year is not promising, as
the depression following the recent commercial crisis is likely to react for some time
on the import trade.
The hint given the Grand Vizier will of course reach the Sultan, and it should
strengthen his Highness* hands in resisting the German demands.
I have, &c.
(Signed) G. BARCLAY.
J i
Inclosure in No. 1.
Memorandum communicated to Mr. G. Barclay.
D’APRES la Convention de Bagdad, la ligne est divisee en sections de 200 kiiom.
La Societe demande au Gouvernement de prolonger la ligne d’Eregli-Boul-
gourlou a Elfan d’une longueur de 800 kilom. en passant par Alep.
L’annuite necessaire pour cette construction est la suivante:
Pour 1’emprunt d’Etat, par kiiom...
Pour les frais d’exploitation, par kiiom.
Soit, pour les 800 kiiom.
Ou, en livres Turques
!